All Forum Posts by: Michael Cheng

Quote from @Michael Cheng:

Quote from @Michael Paling:

Welcome Michael! 

BiggerPockets is definitely a great place to learn from. You've got some great advice from others in this post already, so one thing I'll add is to make sure you are analyzing deals, running the numbers, and just practicing these things so that you start getting comfortable with understanding what does and does not make a good deal. You can start by looking at any property on Zillow, Redfin, Realtor.com, etc. and run the numbers for that property, whether you actually have any interest in it or not. This will help you pounce on the right deal for you when it appears.

Another great resource that I've used so far is the books that Brandon Turner wrote. I've read the Book on Rental Property Investing, No and Low Money Down, and Managing Rental Properties. They're all great at breaking everything into smaller bite size pieces and I go back to them frequently. 

Since I have no experience analyzing properties, I think I’ll let the realtor I talked to give me suggestions that I can then look into more myself. I’m thinking good realtors should be able to find good deals better than I can myself, especially since I’m so new?  

I agree with Bruce about being careful with Realtors. Since you found yours on BP, you’re probably better off than other people, but it’s still not a replacement for you understanding the numbers and learning what does and doesn’t make a good deal. I still suggest practicing analyzing deals that you don’t plan to buy. 

Quote from @Michael Cheng:

Quote from @Bruce Woodruff:

2 things cross my mind when you mention buying all cash...

1) You become more attractive to lawsuits when lawyers discover you have so much equity

2) You lose any write-offs associated with that payment....do the math on that one...

Just my $0.02

 1) Is that really a thing? Do lawyers look for things like this and look for lawsuits?

2) I’m new so I don’t have any context for understanding the math. If you could explain more, great. If not, no worries :).

 1) Yes

2) Ask your CPA to analyze a deal for you so you can see how it works. Sometimes people need write-offs, sometimes not so much.

2 things cross my mind when you mention buying all cash...

1) You become more attractive to lawsuits when lawyers discover you have so much equity

2) You lose any write-offs associated with that payment....do the math on that one...

Just my $0.02

Welcome Michael! 

BiggerPockets is definitely a great place to learn from. You've got some great advice from others in this post already, so one thing I'll add is to make sure you are analyzing deals, running the numbers, and just practicing these things so that you start getting comfortable with understanding what does and does not make a good deal. You can start by looking at any property on Zillow, Redfin, Realtor.com, etc. and run the numbers for that property, whether you actually have any interest in it or not. This will help you pounce on the right deal for you when it appears.

Another great resource that I've used so far is the books that Brandon Turner wrote. I've read the Book on Rental Property Investing, No and Low Money Down, and Managing Rental Properties. They're all great at breaking everything into smaller bite size pieces and I go back to them frequently. 

Quote from @Michael Cheng:

Thanks for the info! I’ve already talked to a realtor who I’m learning more from also!

 Lol. be very careful. You can generally trust the info you get on here a lot more... :-)